Warehouse Labor Retention

As the need for warehouses expands across the globe, the demand for warehouse employees is climbing. The result of this demand is wage increases and tactics to lure workers away to competitors. However, wages alone are not enough to keep warehouse workers on the job.  

Labor Challenges

Recruiting and retaining warehouse employees can be a difficult challenge. In those areas with numerous warehouse facilities, there is intense competition for employees who frequently switch jobs. The Generation X workforce, who value loyalty to employers, is aging now, and the millennials are not attracted to the warehouse industry. This problem is especially challenging as millennials now make up a substantial part of the workforce. Warehouses often maintain long and inconvenient working hours, which is unattractive for many prospective employees. Training these employees is also an issue with all of the advances in warehouse technology.  

Labor Retention

Workers are essential to any industry and keeping them adds excellent value to your warehouse operation. It is vital to find ways to recruit and retain the best talent available. Wage increases are not enough, but additional actions can be taken to increase warehouse labor retention. 

Bonuses and Gifts 

The challenge of retaining skilled warehouse workers is so high now that many companies are offering bonuses and gift cards as a way to keep valued employees. Referral bonuses are typical as they benefit the employee as well as the employer. Many employees view gas cards, gift cards, and rewards as being more practical and valuable than a 401(k). 

Flexible Scheduling 

Perhaps one of the most helpful methods for retaining employees is the improvement of workplace conditions. Offering some variation in scheduling can go a long way in increasing the morale of employees. Flexible shifts offer the warehouse employee the opportunity to schedule their hours around their lives and personal needs. Flexibility is also a great way to bring working mothers, retirees, and workers with second jobs into your labor pool. Paid lunch breaks can also help with employee retention.  


Maintaining a reputation as a top employer is no small feat. The key is to maintain a worker-friendly environment that addresses the needs and concerns of your employees. Here are a few ideas: 

  • Always engage with employees on a one-on-one basis.  
  • Keep a flexible policy that will not allow employees to fear for their jobs. 
  • Allow sufficient time for lunch breaks. 
  • Make sure employees adhere to safety guidelines. 
  • Communicate your expectations for employees. 

Workplace culture is a massive factor in worker retention, reducing turnover rates, and becoming an employer of choice. 

Recruiting and retaining warehouse employees is more challenging than ever before. 

SIS can review your staffing needs and customize a program for you to meet your warehouse staffing requirements. Check out what SIS can do for your company today.


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